Pensions Bulletin 2026/08
This content is AI generated, click here to find out more about Transpose™.
For terms of use click here.
This edition: Pension Schemes Bill – House of Lords wraps up Committee stage, and SPP looks at employer covenant in the new DB funding regime.
Pension Schemes Bill – House of Lords wraps up Committee stage
The House of Lords has, over three further sittings since we last reported (see Pensions Bulletin 2026/04), completed Committee stage consideration of the Pension Schemes Bill, taking eight sittings in all to complete its work. As expected, the Bill has now gone through with all amendments proposed by the Government now incorporated (other than some procedural ones in relation to the AWE pension scheme – see below) and with none of the non-Government amendments accepted.
The Government amendments now in the Bill include the following, on which we reported in Pensions Bulletin 2026/01:
- The establishment of a new public sector pension scheme into which the current AWE pension scheme is to be transferred whilst preserving existing rights of scheme members. (For clarity, AWE refers to the Atomic Weapons Establishment in Berkshire.)
- Further changes to pre-97 indexation for PPF compensation and FAS assistance.
We had been expecting a Government amendment to facilitate the statutory guidance on trustees’ investment duties, but this has yet to appear. However, the promise remains to bring forward legislation “when parliamentary time allows” and to consult on draft guidance later this spring.
The Bill now moves on to Report stage, the date for which is not currently known.
Comment
Despite the length of time devoted to Committee stage and the many and varied amendments being proposed from the non-Government benches along with the lengthy debates, there was little, if any, movement from the Government on what it intends its Bill to deliver or the timescales for this. With the Bill in good shape after Committee stage, it does seem to be on track for Royal Assent in the spring.
SPP looks at employer covenant in the new DB funding regime
The Society of Pension Professionals (SPP) has published a short paper analysing how employer covenant assessment is evolving under the UK’s revised DB Funding Code. Available from the Guides and Reports section of its website, it seeks to dispel several common myths and reinforce the continuing importance of covenant within the new regulatory environment.
Its key messages are the need for proportionality in covenant advice, professional judgment to accompany metrics such as the 1-in 6-year Value at Risk, the benefits of all stakeholders in the valuation process working together and the merits of not rushing into an endgame strategy. After this the paper discusses five “myths” and one “fact” relating to covenant work, which taken together paint a positive picture of the covenant process as it has evolved under the new funding regime.
Comment
Once more the SPP has produced an accessible paper, this time which will be of use to those seeking a primer on the role of covenant assessment in the new DB funding regime.
Sign up to receive our weekly bulletin
Subscribe to LCP emailsThis Pensions Bulletin does not constitute advice, nor should it be taken as an authoritative statement of the law. For further help, please contact David Everett at our London office or the partner who normally advises you.
If you would like to receive the weekly pensions bulletin automatically by email please fill in this form.
